Will The Economy Collapse?

[median]

I was reading this article: http://www.moneynews.com/MKTNews/billion...ce=taboola, and I would like to know what you think about, what some are calling, the "coming collapse". I found reviews for the book Aftershock by Robert Wiedemer. There is another book by the same title, by Robert Reich, which pertains (generally) to this subject as well. Weidemer is basically arguing that we either take a hit now (i.e. - decrease entitlements), and we MAY stave off a huge collapse, or push the debt back further (increasing the money supply), and then we will certainly have a kind of economic Armageddon.

There is no question that tons of Americans were living beyond their means prior to the burst of the housing bubble, and now they are having to cut back (like companies are also having to do), and live within their means. So, what are your thoughts? Will America face an economic TKO in the next 2-5 years? Please site sources.

[Phish]

why are you always reading an article?

mah screw the economy lets all live like hippies

[median]

why are you always reading an article?

mah screw the economy lets all live like hippies

LOL. Because I like to educate myself about what is going on in the world!

[Something completely different]

It`s Warren Buffet`s and a few other investors decision to do so.
Some of them may think that even if the senat and the president cann agree, it wont be of any use.
And some might think that all hope is lost and that the president and the senat will never compromise.


Personlaly I dont hink that it`s going to happen and that the senate and the president will reach a compromise before driving over the fiscal cliff.

[Dee Dee Ramone]

The economy won't collapse. Optimism is all we need.

[jonb]

The problem with economics is that all the theroists have forgotten the basics.

A town will grow at where the communications are easy and add little costs to the produce. If however the cost of land is made so high that it counters those costs there is no benefit to being in that town and it shrinks. What has happened to the world economy is that the markets have been contrived so that money goes predominantly to the wealthiest, who invest in assets. This makes the cost of being in a town higher through cost of housing, rents etc, so much so that the towns are unable to grow. This is why most modern economies have followed Japan's example of high land prices and little or no growth.

There are economists pointing in this direction, but their voices are being shut down through a process called 'effortless superiority'. Where maverick voices that do not agree with the current model are being silenced in academic economics.

[cratehorus]

the economy isn't real george........... it only seems like it is

[HorribleOffensiveScouser91]

Well, Capitalism thrives on growth, it's pretty much about 3% compound growth forever, think of that in 20 years time. You have to find new investment opportunities right now for $1.5 trillion dollars...if you keep on going at this pace you're going to have to find profitable investment opportunities for $3 trillion dollars and how are you going to find those investment opportunities? In fact this is now why many capitalists just invest in assets, not aiming to control real things, just simply investing in having more money made out of money.

It is every angle of the way we are running things, it is impossible to maintain. We need the idea of 0% growth but also to distinguish the difference between growth and development. How do we do this? Invest in peoples creative capacities and powers, you DO NOT need growth to do that. We must look to re-distribute the resources.

[cratehorus]

We must look to re-distribute the resources.

thats commie talk

[5thHorseman]

The problem with economics is that all the theroists have forgotten the basics.